AN ACT 1-1 relating to the operation of certain military installations as 1-2 businesses by development corporations. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subdivision (10), Section 2, Development 1-5 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 1-6 Statutes), is amended to read as follows: 1-7 (10) "Project" shall mean the land, buildings, 1-8 equipment, facilities, and improvements (one or more) found by the 1-9 board of directors to be required or suitable for the promotion of 1-10 development and expansion of manufacturing and industrial 1-11 facilities, transportation facilities (including but not limited to 1-12 airports, ports, mass commuting facilities, and parking 1-13 facilities), sewage or solid waste disposal facilities, recycling 1-14 facilities, air or water pollution control facilities, facilities 1-15 for the furnishing of water to the general public, distribution 1-16 centers, and small warehouse facilities capable of serving as 1-17 decentralized storage and distribution centers, and for the 1-18 promotion of development or redevelopment and expansion, including 1-19 costs of administration and operation, of a military base closed or 1-20 realigned pursuant to recommendation of the Defense Closure and 1-21 Realignment Commission pursuant to the Defense Base Closure and 1-22 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended, 1-23 and of facilities which are related to any of the foregoing, and in 2-1 furtherance of the public purposes of this Act, all as defined in 2-2 the rules of the department, irrespective of whether in existence 2-3 or required to be identified, acquired, or constructed thereafter. 2-4 As used in this Act, the term "development areas" shall mean any 2-5 area or areas of a city that the city finds and determines, after a 2-6 public hearing, should be developed in order to meet the 2-7 development objectives of the city. In addition, in blighted or 2-8 economically depressed areas, development areas, federally 2-9 designated empowerment zones and enterprise communities designated 2-10 under Section 1391, Internal Revenue Code of 1986, or federally 2-11 assisted new communities located within a home-rule city or a 2-12 federally designated economically depressed county of less than 2-13 50,000 persons according to the last federal decennial census, a 2-14 project may include the land, buildings, equipment, facilities, and 2-15 improvements (one or more) found by the board of directors to be 2-16 required or suitable for the promotion of commercial development 2-17 and expansion and in furtherance of the public purposes of this 2-18 Act, or for use by commercial enterprises, all as defined in the 2-19 rules of the department, irrespective of whether in existence or 2-20 required to be acquired or constructed thereafter. As used in this 2-21 Act, the term blighted or economically depressed areas shall mean 2-22 those areas and areas immediately adjacent thereto within a city 2-23 which by reason of the presence of a substantial number of 2-24 substandard, slum, deteriorated, or deteriorating structures, or 2-25 which suffer from a high relative rate of unemployment, or which 3-1 have been designated and included in a tax incremental district 3-2 created under Chapter 695, Acts of the 66th Legislature, Regular 3-3 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or 3-4 any combination of the foregoing, the city finds and determines, 3-5 after a hearing, substantially impair or arrest the sound growth of 3-6 the city, or constitute an economic or social liability and are a 3-7 menace to the public health, safety, or welfare in their present 3-8 condition and use. The department shall adopt guidelines that 3-9 describe the kinds of areas that may be considered to be blighted 3-10 or economically depressed. The city shall consider these 3-11 guidelines in making its findings and determinations. Notice of 3-12 the hearing at which the city considers establishment of a 3-13 development area or an economically depressed or blighted area 3-14 shall be posted at the city hall before the hearing. 3-15 "Federally assisted new communities" shall mean those 3-16 federally assisted areas which have received or will receive 3-17 assistance in the form of loan guarantees under Title X of the 3-18 National Housing Act and a portion of the federally assisted area 3-19 has received grants under Section 107(a)(1) of the Housing and 3-20 Community Development Act of 1974, as amended. 3-21 SECTION 2. Subsection (b), Section 23, Development 3-22 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 3-23 Statutes), is amended to read as follows: 3-24 (b) The corporation shall not have the power to own or 3-25 operate any project as a business other than as lessor, seller, or 4-1 lender or pursuant to the requirements of any trust agreement 4-2 securing the credit transaction. Accordingly, the user pursuant to 4-3 any lease, sale, or loan agreement relating to a project shall be 4-4 considered to be the owner of the project for the purposes of the 4-5 application of any ad valorem, sales, and use taxes or any other 4-6 taxes levied or imposed by this state or any political subdivision 4-7 of this state. The purchase and holding of mortgages, deeds of 4-8 trust, or other security interests and contracting for any 4-9 servicing thereof shall not be deemed the operation of a project. 4-10 The corporation shall, however, have all powers necessary to own 4-11 and operate a project as a business if the project is a military 4-12 installation or facility closed or realigned pursuant to the 4-13 Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 4-14 2687 note) as amended. 4-15 SECTION 3. This Act takes effect September 1, 1997. 4-16 SECTION 4. The importance of this legislation and the 4-17 crowded condition of the calendars in both houses create an 4-18 emergency and an imperative public necessity that the 4-19 constitutional rule requiring bills to be read on three several 4-20 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1127 passed the Senate on April 17, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1127 passed the House on May 13, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor